Quiz on Companies Act of Bhutan 2016

What is a derivative claim?

• A claim made by the company against its shareholders

• A claim made by the CEO

• A claim made by a shareholder on behalf of the company

• A claim made by the Regulatory Authority

What must a shareholder specify when applying for a derivative claim?

• The financial status of the company

• The cause of action and facts of the case

• The number of shares held

• The names of all directors

What is the maximum number of directors allowed on the board of a regulated entity?

• Eleven

• Nine

• Seven

• Five

What is the role of the Chief Executive Officer (CEO)?

• To manage the company's finances

• To oversee strategic direction and business performance

• To represent shareholders

• To conduct board meetings

What is required for an Annual General Meeting (AGM) to be valid?

• It must be held every month

• It must be held at least once a year

• It must be conducted online

• It must be attended by all shareholders

What is the quorum for a board meeting in a public company?

• Half of the directors

• Two-thirds of total strength or two directors, whichever is higher

• Two directors

• One director

What is insider trading?

• Trading based on public information

• Trading only during market hours

• Trading based on confidential, price-sensitive information

• Trading without any information

What is the penalty for insider trading under the Companies Act?

• A fine of up to Nu. 100 million or both

• A warning from the Regulatory Authority

• A fine of up to Nu. 1 million

• Imprisonment for up to 5 years

Who can call an Extraordinary General Meeting (EGM)?

• Shareholders holding 10% of the paid-up capital

• Any director

• Only the CEO

• The Regulatory Authority

What is required for a special resolution to be passed?

• More than 50% votes in favor

• Majority of directors' approval

• At least 75% votes in favor

• Unanimous consent from all shareholders